By Ed Maltby, NODPA Executive Director
Virtual Fencing is a technology used to create invisible boundaries for managing livestock without physical fences. The technology uses GPS, wireless communication, and software to control and monitor animal movements within a designated area. Advances in GPS, wireless communication, and animal behavior understanding have now allowed for the precise control of livestock movements without physical barriers. Animals are fitted with a GPS collar that tracks their location and provides cues like sounds or mild stimuli when they get close to the limits set by the farmers via an app on their phones.
There are four VF vendors available in the US: eShepherd/Gallagher, Halter, Nofence, and Vence from Merck Animal Health. All the companies operate programs for different livestock, mostly beef, sheep and goats on ranches. Halter is the only one with the software, collar design and experience of working with herds in New Zealand and Australia that is moving forward with a virtual fence for dairy. Dairy farms in New Zealand are seeing the benefits of the solar powered collar that use base stations rather than a cellular network which is quite variable in rural US. One farmer estimates saving 1000 hours of travel a year by reducing time spent on motorbikes to move the herd. Halter dairy systems are NOT currently available in the US, but they anticipate expanding into this sector by the end of 2025 into 2026. Halter is currently looking at what other features can be included to assist with herd health and management.
How does virtual fencing work?
All the available virtual fencing options allow a cattle producer to define the boundaries of the virtual paddock/pasture through software on a computer or smart device provided by the company. It is advised that the farm should have a conventional boundary fence. Virtual fencing uses GPS technology and smart collars to manage livestock without physical barriers. Each animal wears a collar equipped with GPS and sometimes other sensors. These collars communicate with a central system that defines virtual boundaries on a digital map.
When an animal approaches or crosses the boundary, the collar emits a series of cues. Initially, these are typically audio signals, like beeps, to alert the animal.
What are the benefits and challenges of virtual fencing?
The challenges for using Virtual Fencing with dairy are around price, adapting to new technology, training cows and heifers, location, damages to the collar from feeding in bunks and stanchions, reawakening the collars after winter housing while still having to deal with shade and water access.
The advantages are not limited to the elimination of time consuming setup and maintenance of physical fences; virtual fencing can also offer producers additional benefits for livestock management:
Unlike traditional static fences, virtual fences offer farmers flexibility. Through software platforms, farmers can quickly and easily adjust grazing areas, respond to changing conditions, and manage land more effectively.
Virtual fencing eliminates the need for expensive materials and labour associated with physical fences, reducing long-term operational costs. In 2023, New Zealand based company Halter set up virtual fencing for cattle in Tasmania for $8.50 per month, per cow. Virtual fencing can be viable, but farmers need to consider size of operation and other operational needs to determine if it is economically beneficial.
Virtual fencing can prevent overgrazing, ensuring the sustained health of natural vegetation and soil, as well as wildlife habitat preservation, as it removes the need for land clearing to make way for fences. Virtual fencing is also seen as a valuable tool for farmers as they adjust livestock management in response to unpredictable shifts in climate conditions.
Tucker Brown, R.A. Brown Ranch, in Throckmorton, Texas, started using virtual fencing out of necessity after wildfire destroyed fencing on their ranch in 2023. "This virtual fence allows us to be more efficient with the land that we have," Brown says. They will continue to utilize it across their ranch to better manage rangeland (Virtual Fencing Pinpoints Location of Cattle Grazing, Virtual Fencing: A Rancher's New Best Friend, Progressive Farming, 3/31/2025.)
The VTDigger reported that Ben Nottermann, co-owner of Snug Valley Farm, East Hardwick, VT, tested the technology in 2023 and took part in the full pilot program run by the Agritech Institute for Small Farms in 2024. He says that he saves at least 45 minutes a day by moving fence lines on the Nofence app instead of physically changing the posts along his cattle’s path. When that time is added up over about 200 days of the grazing season, he said, the virtual fence “pay(s) for itself” in labor cost savings. Nottermann said the technology is helpful in emergency situations, too. When historic rainfall struck the state last July, he said he was separated from his herd for five days due to flooding. He said the Nofence app was a “lifesaver” because he could move the fence perimeter away from flooded areas and track each cow to make sure they were safe — all while keeping himself out of harm’s way.
Comparison between different Virtual fence systems
The cost and equipment needed is outlined above, and below is the cost as explained by the companies in an article by Jennifer Carrico (jennifer.carrico@dtn.com ) of Progressive Dairying, published 3/31/2025. Cost will vary depending on size and location. The cost and maintenance of the equipment is currently estimated to be economical for herds of upward of 100 cows and more.
Gallagher eShepherd: This company offers price breaks based on the number of cattle. For example, a rancher who wants 350 neckbands will pay $250 per neckband, remembering that it's a long-lived product with a three-year warranty.
Halter: Each ranch is unique, and Halter will assess each ranch's needs, opportunities and challenges to help ranchers understand the value of implementing the system. Halter's pricing includes a one-time infrastructure investment starting at $4,500 for the base tower (occasionally two will be needed in challenging terrain), with an annual fee per collar. Halter expects dairy solar-powered collars to be less than $100 per head.. This includes 24/7 support without ongoing battery costs and time-consuming replacements.
Nofence: Pricing for the Nofence subscriptions is based on the number of collars purchased. Actual complete cow collars are $329 each, small collars for goats and sheep are $229 each. These come with a five-year warranty covering any faults that impact the normal use. For the first 12 months, the subscription is $56 per collar with 49 collars or less and $42 per collar for 50 collars or more. Each month after the first year is $6.50 per collar in use per month for 49 collars or less and $4.50 per collar in use per month for 50 collars or more. The subscription price is in addition to the collar cost. Other equipment is available from the company.
Vence: Each base station costs around $10,000. Each collar is sold on a subscription basis of $40 per year, which covers the collar, software and technical support. The battery for each collar is $10.
Anyone interested in the Virtual Fence systems should go to the respective company website and the team will reach out to have a personal conversation about each farm’s unique needs and cost. In the past, there have been opportunities for cost-share and grant opportunities to support producers adopting new technology. We hope to have some representatives from the companies at the NODPA Field Days on September 25th and 26th, 2025 in Pompey, NY.
References:
Posted: to Organic Production on Sat, May 17, 2025
Updated: Sat, May 17, 2025
